West Berkshire Seeks Financial Support What Does It Really Mean

West Berkshire Council needs financial help and has asked the government for support, as councils must balance their budgets each year. More councils now need help, with many asking for “exceptional financial support”.

Last year, nineteen councils asked for government help, while this year, about twenty-nine councils need assistance. If denied EFS, West Berkshire needs to cut £3 million and they have no savings to use.

EFS doesn’t always mean extra money. Social care costs are making balancing budgets hard. Councils can’t use assets for daily costs; using assets or borrowing makes them poorer, and this could last for years.

Local government funding is struggling, especially for social care. The government announced £69 billion for local areas. Councils can use asset sales for daily spending, but this is only if ministers agree.

EFS is short-term government aid for councils facing big money problems. It helps them avoid a “section 114” report, which is like a bankruptcy notice that prevents councils from spending after it’s issued.

This funding is one-time assistance, and the council must repay the money later. They can treat some spending as capital, funding costs by borrowing or selling assets. West Berkshire plans to repay by selling property that they have sales planned for already, which will reduce long-term borrowing costs.

Social care demand has risen a lot, going from 56% of the budget to 74%. Home-to-school transport grew by 44%, and there has also been a significant increase in homeless residents needing housing.

West Berkshire isn’t doing as badly as other councils. Windsor and Maidenhead wanted a 20% council tax rise, but the government said no to that idea and agreed to an 8.99% increase, whereas West Berkshire’s is still at 4.99% . Windsor and Maidenhead wanted the big rise as they needed it after years of funding cuts and sought to reduce borrowing needs.